find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Sugar industry a sweet deal for M&A lawyers

Sugar industry a sweet deal for M&A lawyers

The long-coming and much talked about rationalisation of the sugar industry is upon us, and it's going to produce some sweet deals for mergers and acquisitions lawyers.

THE long-coming and much talked about rationalisation of the sugar industry is upon us, and it's going to produce some sweet deals for mergers and acquisitions lawyers. 


Little more than three months after ending merger talks, Maryborough Sugar Factory, Australia's only listed pure sugar company, has been moving towards an off-market takeover offer for unlisted miller Tully Sugar, a major competitor.  


The sugar company announced last week it intended to make a $90.4 million offer to buy all shares of Tully. If the offer is successful, Maryborough will issue 40.2 million new shares with Tully shareholders collectively owning 46 per cent share of the merged company, it said. 


Mallesons Stephen Jaques partner John Humphrey, whose M&A team advised Maryborough on the takeover, said the deal signals an impending shift in the rationalisation of the sugar industry. 


Humphrey predicts a wave of deals as the level of government assistance to the sugar industry has dropped off.


Historically, and specifically over the past 100 years, the sugar industry has seen sugar growers get together and form these milling companies as cooperatives, said Humphrey. 


But a drop in assistance from government has reduced, he said, "which has meant sugar farmers have been at the mercy of commodity prices, which have fluctuated". 


"This has meant the sugar industry has gone through hard times, and there have been a fairly significant rationalisations going on. It has resulted in a lot of mills closing," the Mallesons partner said. 


The various cooperatives have converted to limited liabilities, said Humphreys, but they have been unlisted. "Now what is happening there are some people looking to achieve some aggregation in the industry. This is interesting because this merger, if it goes ahead, will be the first pure sugar company that is listed," he said. 


CSR, which is listed on the ASX, has other operations, said Humphreys. But CSR is now looking to demerger its sugar operations from its other businesses. 


"If that demerger goes ahead there will be another pure sugar player," he said. 


Mallesons advised Maryborough on the structuring and planning of the takeover, as well as the various requirements under the Corporations Act and ASX listing rules. 


The Mallesons team, which also included senior associate Michael Angelini and senior lawyer Rhys Casey, also coordinated the due diligence and verification process and advised on the legal issues arising throughout the takeover and compulsory acquisition process. 

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Sugar industry a sweet deal for M&A lawyers
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice, ALA, right-to-die law
06:04
‘Right-to-die’ laws would be a relief for terminally ill: ALA
The passage of an assisted dying bill through the lower house of Victorian Parliament has been haile...
Diversity
06:00
Diversity top of agenda for future WA Law Society president
The advancement of diversity in the Western Australian legal profession will be one of the key items...
Jetski
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...